By Helen Nugent and Ben Hoyle, The Times and The Sunday Times - Times Online, Britain, UK, – June 10, 2005
DON’T blame it on the sunshine, don’t blame it on the moonlight, don’t blame it on the good times — blame it on the size of your overdraft limit.
A visit to the bank will not necessarily be a happier experience in the future for HSBC customers, but it will certainly be a less-muted affair after the company disclosed yesterday that it plans to play music to them while they stand in the queue waiting to be served.
The bank shrugged off suggestions from consumer groups that it was hiring DJs as a gimmick to distract customers from slow service. Indeed, breaking with the traditionally sombre atmosphere of high street banking had proven benefits for customers and cashier staff, reducing boredom and creating an upbeat atmosphere.
According to new data released by Point-Of-Purchase Advertising International (POPAI), in-store advertising in convenience stores (c-stores) by an average of 9.2 percent. The information was made available in the just-released final report from the c-store phase of POPAI’s “In-Store Advertising Becomes a Measured Medium” study.
Information concerning proof of placement of in-store ads was impressive, POPAI said; the data demonstrated that 45 percent of all audited brands were supported by in-store advertising. This compared favorably with a 27 percent figure for in-store advertising of audited products on supermarket product displays, POPAI said.
Moreover, in-store advertising was found to be very cost-effective. The range of costs for generating 1,000 consumer impressions ranged from $1 to $9, depending on the form of in-store advertising used.
The study consisted of audits of more than 50 brands conducted in a nationwide sample of 120 convenience stores. Products audited included alcoholic beverages, bottled juice, bottled water, carbonated soft drinks, isotonic/energy drinks, gum/mints, health and beauty care, and salty snacks.
What’s it to Radio? The results are part of POPAI’s efforts to make in-store advertising a measurable medium; the figures argue well for the medium’s effectiveness in-store, but an off-premise media partner such as Radio still is needed to help consumers decide where to shop.
Source: POPAI, 2/15/03
By Jennifer Maslow, Associate Editor of Specialty Food Magazine.
As shoppers enter a specialty food store, their brains instantly begin to analyze the environment. Their eyes are drawn to bright signs conveying valuable information; they pick up on visual cues that dictate the flow of traffic. Tempting aromas of freshly baked bread may draw customers toward the bakery while sampling stations create an interactive experience by inviting them to smell, touch and taste.
All too often, however, retailers focus solely on visual elements and neglect to engage the other senses. Many fail to give serious consideration to how shoppers experience a retail environment through their sense of hearing.
Rick Altman, author of Sound Theory/Sound Practice, defines a soundscape as “the characteristic types of sound commonly heard in a given period or location.†By creating a soundscape conducive to shopping, retailers can dramatically alter the feel of their stores, enhance customers’ experiences and improve business.
Studying Shopper Behavior
Envirosell, the New York City-based research and consulting firm founded by retail anthropologist and best-selling author Paco Underhill, studies human behavior in retail spaces. “We are basically design helpers,†explains Director of Prototype Design Research Craig Childress. “We work with retailers and designers to create store environments that fit the merchants’ goals while accommodating the behavior of shoppers.â€
Demand for Non-Traditional Advertising Drives Growth of In-Store ‘Radio’ Services
by Randy J. Stine, RWOnline.com - Radio World Newspaper, Aug 16, 2006.
NEW YORK While the concept of an in-store audio business - music or messages broadcast over a store’s sound system - is nothing new, the mechanics behind today’s version is novel. Grocery stores have piped in music at least since the 1950s, but nearly gone are the days of looped music and canned messages, some so generic they could play in any store in any city. Today’s proliferation of new technology gives retail audio networks the ability to offer high levels of customization, with some companies even pitching their services as “in-house” radio stations. These services also give advertisers another platform to place ads that can reach shoppers who are already in-store and ready to buy.Venerable names such as Muzak, DMX Music and Music Choice still provide retail music services. But they face stiffer competition from companies that are offering sophisticated solutions to customers by delivering programming over the Internet rather than via satellite or FM subcarrier. Even Sirius Satellite Radio and XM Satellite Radio offer business music. Retail audio suppliers say music helps businesses connect with customers and can even increase employee productivity. More important, they say in-store audio can help drive sales through messages aimed at people who are already at the point of purchase and help to defray system costs through advertising.
Distinct store identity
The “Arbitron Retail Media Study” in 2005 reviewed America’s awareness of retail audio broadcasting and the advertising it carries. While the most comprehensive analysis to date looked specifically at the value of retail audio in grocery stores and drugstores, many types of businesses view in-store audio as essential in creating a distinct identity for their stores.”Customization is the one word we hear a lot. Retailers are beginning to think about forming networks of all their stores linked together. It is definitely becoming a more managed thing. It’s clear that retail audio broadcasting as a national advertising vehicle is becoming is effective and becoming more effective,” said Diane Williams, project manager for Arbitron’s custom research business. Parties interested in audience measurement of in-store advertising approached Arbitron about conducting the study, Williams said, to help determine how receptive Americans are to storecasting.Americans “seem to like advertising if it is geared towards their interest at a specific time. More than 40 percent say they have made a purchase they were not planning on making after hearing a retail audio commercial or promotional announcement,” Williams said, “while 57 percent of Americans believe it is an acceptable form of advertising.” It’s that “point-of-purchase” immediacy that has caught the interest of in-store radio providers and media buyers, Williams added.”Media buyers are starting to look at these in-store networks when they plan out their buys,” she said, noting that Proctor & Gamble Co. and Unilever have both stated they plan on spending more ad dollars on at-retail marketing. The Arbitron report concluded, “As Americans spend more time with nontraditional media, it becomes important [for advertisers] to utilize media that can put the advertising message in the ‘window of opportunity preceding each purchase.’” Rich Balsbaugh, CEO and president of Pyramid Radio Inc., an in-store audio network provider, said in-store radio is moving quickly from a background service to the foreground.
Retail Media is a more popular form of marketing than cinema , radio and outdoor advertising.
In the UK alone, around £1.15 billion a year is spent on promoting products at Point Of Purchase (POPAI/PIRA: The future of Point of Purchase Advertising in the UK and Ireland, 2003).
75% of purchasing decisions, or more, are made in-store but only 5% of ad spend goes on Point of Sale. (POPAI)
Sir Martin Sorrell, in an interview with The Times claimed that “many companies believe that up to 80% of brand decisions are now made in-store.â€
In The Newspaper Society 2002, 82% of people obtain their information about special offers in-store.
Research from Information Resources has cited in-store fixtures as the best marketing tool for guaranteeing Return on Investment (ROI). For short-term sales increases in-store fixtures give an average of 160% ROI according to a survey of 300 campaigns that weigh the sales uplift in terms of revenue against the cost of activity. In comparison there was a 20% return for sampling, 46% for TV advertisements and 20% for direct mail.
For the year 2002 36% of clients interviewed for In-Store Magazines POP survey had invested more in POP during the past 12 months than in the previous year.
Research Categories
Singapore Corporate Headquarters
Ngee Ann City Tower A
391A Orchard Road
#12-01/#13-08
Singapore 238873
Singapore
Telephone Numbers: +65 6832 5105
Fax: +65 6838 5296
Philippines Corporate Headquarters
Unit 208 Cattleya Building,
235 Salcedo Street, Legaspi Village
Makati City 1229
Philippines
Telephone Numbers: +63 2 894-5116 / 892-1460 / 813-007
Fax: Local 102
Email: info@audiowav.com
You can also be directly connected to:
Tim Hori | Sales Director
Loc 109
timhori@audiowav.com
Benny Hinolan | Public Address & Installations Director
Loc 115
benny@audiowav.com
Jj Sison | Creative & Activations Director
Loc 107
jjsison@audiowav.com
© audioWAV.com 2007 |